OLMIP.IS WACC - Weighted Average Cost of Capital

The WACC of Olmuksan International Paper Ambalaj Sanayi ve Ticaret AS (OLMIP.IS) is 27.7%.

The Cost of Equity of Olmuksan International Paper Ambalaj Sanayi ve Ticaret AS (OLMIP.IS) is 28.45%.

The Cost of Debt of Olmuksan International Paper Ambalaj Sanayi ve Ticaret AS (OLMIP.IS) is 22.50%.

	Range	Selected
Cost of equity	26.80% - 30.10%	28.45%
Tax rate	16.40% - 20.80%	18.60%
Cost of debt	22.50% - 22.50%	22.50%
WACC	26.2% - 29.1%	27.7%

WACC

OLMIP.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.53	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.80%	30.10%

Tax rate	16.40%	20.80%
Debt/Equity ratio	0.08	0.08
Cost of debt	22.50%	22.50%

After-tax WACC	26.2%	29.1%


Selected WACC	27.7%

OLMIP.IS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for OLMIP.IS:

cost_of_equity (28.45%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.53) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.